INEOS is to supply LNG to Covestro for up to eight years, starting 2027.
The agreement builds on INEOS' newly established LNG supply chain, and both companies' commitment to support European industrial competitiveness, the companies said.
Covestro uses natural gas as a feedstock, as well as an energy source.
INEOS will supply natural gas sourced its global LNG portfolio, providing a stable and predictable feedstock and energy stream for Covestro’s European operations.
David Bucknall, INEOS Energy CEO, said, “Our goal is to supply customers with vital energy throughout the energy transition, not just at the end. That means maintaining competitive hydrocarbon supplies as alternatives emerge and grow.
“This long-term LNG deal with Covestro does exactly that, providing reliable, cost-effective energy to help our industrial partners manage volatility and avoid shortages,” he said.
Thorsten Dreier, Covestro’s CTO added: "Securing a stable, competitive and predictable gas supply is essential for our operations right now.
“This agreement with INEOS provides us with the long-term security we need to maintain our production and contribute to the European economy.
“We value INEOS' commitment to supporting European industry and their proactive approach to addressing the region's energy challenges. This contract is an important building block for our transition as a company in the energy intensive industry towards an affordable renewable energy supply,” he said.
This agreement reinforces the shared goal of both companies to maintain a strong and competitive European industrial base. By ensuring a reliable gas supply, INEOS and Covestro are taking tangible steps to secure the future of their European manufacturing assets.
INEOS entered the LNG sector in June, 2022, signing a 20-year agreement with US-based Sempra Infrastructure to supply 1.4 mill tonnes of US LNG annually.
Covestro is a manufacturers of polymer materials and their components. The comapny supplies customers worldwide in industries, such as mobility, building and living, as well as the electrical and electronics sector.
In addition, Covestro polymers are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry.
